>> the hacking of sony, north korea calls it a righteous act. new measures for australia's banks. and when an orderly city shakes things up, our look at singapore, the disruptor. welcome to "first up." coming from hong kong, streaming .n mobile, and on bloomberg.com i am standing in for angie lau. to our top stories, north korea

has denied any involvement in a cyber attack on sony pictures. it included the private details of 47,000 employees, as well as several hollywood stars, one of which is sylvester stallone. pyongyang denied any involvement. with the latest. north korea has finally reacted. >> what was that comment? north korea would mercilessly destroy anyone. that was back in june. for evilust punishment doings. this movie has been called "the interview." seth rogen is a producer. they go to north korea. forgo an interview with

kim jong un. since all this happened, this hacking, it is bad for sony but views of the trailers have the lastnfold in week. it is in everton public city for movie. here is north korea, talking about the reaction. >> this attack is clearly the of reporters who came forward during our appeal. that sonytune pictures experience can only be seen as a just punishment for their evil doings. >> there you go, very strong words. clearly just punishment for evil doings. that is the warning to sony. >> they talked about how this could be a hallmark of this

group that was behind the big hack. last year it was the banks and tv stations. this time we are starting to hear where this hack started. last time it was china. >> north korea denied any involvement in this. to thebeen traced back five-star saint regis hotel on december 2 in bangkok. that goes back to 47,000 sony employees. you mentioned sly stallone. all these factors going out. seoul is the name of the group. the north korean government

itself saying if they are not involved in this. it was traced back to that hotel in bangkok. >> they said this is just the beginning. >> it is quite scary because this raises the bar of concerns. >> we will get back to you later. all of these bank stocks are in focus after an inquiry recommended they raised up to $25 billion in extra capital to guard against any future crises. big four banks, they usually have a good reputation. why have they been singled out for attention? them at the man who wrote this inquiry is himself the former head of the commonwealth bank of australia. he says they are not being singled out. there is no question of their strength. however he wants them to raise more capital to guard against

future crises. the treasurer commissioned this report and here is what he had to say about it. my perspective i have decided it is vitally important our banks will not be capitalized, and they are. what the murray inquiry is recommending is that we further look at increasing that capital and that is something that needs to be dealt with by, appropriately, the regulator. in this case is the australia regulation authority. it will decide in consultation with the banks how much extra capital they need to hold and when they need to hold it by. the current capital ratio is 8.3%. 10% touiry recommends 11.5%.

that means australia's banks may need to raise $15 billion to $25 billion. >> how have the banks reacted to this? >> not well. this leaked out in the past few months. there was an expectation that this was coming. the banks are already well capitalized. said for everyone advantage point in rising capital would mean another 10 basis points on the typical home loans. already the banks suggesting any costs involved would be passed promptly on to the customer. said thesey himself banks are not exaggerated. they are rising today. a commonwealth bank and trade are up. may -- they check

out over the previous few months. they already have to carry more they haveo they say to do the same. it is going to level the -- level the playing field. >> australia's banks are strong. why was the report commissioned in the first place? , they do these every couple of decades in australia. a branch review of the financial system. the flowing of the ozzy dollar. the next one was 97, and that led to the setting up of that regulation authority after a few minutes ago. .t has been 17 years

they took 6008 hundred submissions, made 44 recommendations. the one the treasury is really focusing on is the increased capital ratios for banks. another global financial crisis, he doesn't want the us trillion taxpayer -- the australian taxpayer to be on the hook. >> we will take a look at some of those markets. -- much reflection from what from that new news in australia. weakening,ian dollar close to 2/10 of a percent. gold check in on oiled and . that close to 2/10 of 1%. the gold slumped on friday at the u.s..

the federal reserve is moving closer to raising interest rates. the u.s. at 321,000 jobs. they are exceeding even the most optimistic projection in our survey. shares are surging up about 10%. cost reductions and lower fuel prices are helping margins. the outlook increases the chances for a full-year profit. analysts are still foreseeing losses. is expected toes be top boss. after two deadly crashes. mueller expanded transatlantic services and help to send off takeover bids.

prior to that he helped turn over the belgian carrier. government offices and schools are closed today in manila as a typhoon heads for the capital. it is the strongest to hit the philippines this year. it threatens the region with hail. were is of thousands accurate and at least three people died in the area that was devastated by super typhoons last year. its gdp day in japan and economist expect the government to say the recession wasn't as deep as first reported. from tokyo. us live what are we expecting? >> good morning. it is a beautiful day in tokyo.

the japanese may be waking up to better than expected economic data. [no audio] -- 1.6% leading into september. a contraction has not been as bad. they expect the economy to have shrunk by only one half of a percent. spending led by producers and smartphone price makers leading to that revision, it would be two consecutive quarters of negative growth. after that 7.3% contraction in the previous quarters. japan is in a recession. less contraction than initially expected. remember that the last month gdp data led to prime minister oblique delaying that sales and tax hike, also calling for a

snap election. he has framed a referendum on the economic policy scenes and he is seeking to carry out unfinished business. >> we did a cacti down -- a countdown clock there. a week awaythan from this election. what are some of the key issues the prime minister still needs to tackle? abe stillminister has a lot to do. core consumer prices only rising. 0.9% in october, after stripping the effect of that april sales tax hike. that is well below the bank of japan's 2% inflation target. be forced to ease

even more to carry out further monetary easing. more stimulus, already unprecedented easing. seven-year lows. smaller companies and households have been hit. the databank saying that japanese corporate bankruptcies have hit a total of 42 just in november. prime minister abbe has delayed that tax hike. and japan's deficit -- [no audio] -- chief cabinet secretary saying that -- >> the prime minister has shown his determination to revitalize

the economy so everyone can withstand the tip -- withstand the sales tax to be raised to 2% in 10 -- half years. he hoped to ensure there will be a substantial increase in wages. >> with a tax hike deferred, abbe still has to figure out the fiscalto cut deficit when funding social security and health costs takes it bigger bite out of the japanese economy and the budget every year. back to you. >> she will be staying there for the week to help us on the that snap election. around 40 minutes away and a quick check on how japan markets may open today. openes pointed to a higher .

weakening.yen also still to come, four central onks in the region deciding rates week.

>> on wednesday a test for indonesia. is anticipating demonstrations demanding an increase in minimum wage. higher salaries could erode indonesia's competitive advantage over china. president vladimir putin heads to india as russia struggles under western strength -- western sanctions and we are asked acting a bunch of energy

bills to be signed. russia has been hard hit by the slump in crude. is expected to be put on sale following the launch of the xbox in september. beijing has lifted a 14 year band on game consuls and sony says it aims to enter the market this month. sunday is a moment to stay in japan. prime minister shinzo abe puts new policies on the line. the opposition is seen as lacking money and driven by factionalism. time for a head start of all the key events in the u.s. this week. su keenan gives us some details. retail sales data will be closely watched by american investors, particularly after that disappointing day in

thanksgiving, otherwise known as black friday. economists are predicting that sales accelerated in november -- this adds car purchases picked up from the month before. --omberg surveys that surveys show that a economist levels have jumped to the highest levels in more than seven years. we are expecting big trauma in washington. u.s. congress is facing a funding deadline and if lawmakers cannot pass a spending bill by thursday of this coming week, we could face a partial shutdown. corporate reports continues with a couple of big names including the obese systems -- including adobe systems, cosco, and others. coming up, is it greater on the equator? what the most instructive ideas in history have to do with singapore. ♪

>> with an over 1000% jump in gdp over the last four decades, singapore is a major turnaround story. why is one of the reasons bloomberg businessweek has named it one of the world's most six -- most successful economic startups. joins us from the

city state itself. good news here. -- as soon th -- hasunda joins us from the city state itself. good news here. >> the founding father had a vision. he had a master plan. -- he wantedmake to make and always in a third world region. he ensured support remained free from the very start. he tried to attract foreign as well as very low covered taxes. it has always been conducive for

business in singapore. he also invested in education. singapore has no natural resources to speak of. unlike countries in the region. the only resource it had was the people. singapore pompton $4 billion. to ensure people are well the reason why foreign companies come to singapore, invest in the country, because the people are well skilled. investorsreason why flock to the countries because singapore managed to be in .nventive it had not a single drop of oil to its name yet. it has oil related sectors.

two companies in particular come to mind. they control 70% of the market. they make oil rigs for the rest of the world. [no audio] singapore does not have a drop of oil. >> joining us live from singapore, thank you so much. you want to find out more about the world's most successful economic startups, it is in a special edition of bloomberg businessweek. it includes several other innovators, as ideas have changed our world. if you use twitter it is even easier to stay in touch with us.

you can also follow my colleagues. checking survivors is making todlines around the world, say to the south china sea. disputes put china in conflict with vietnam. moving ahead, former security from the expelled communist party over the weekend. the next step would be formal charges followed by an open were closed door trial. is because of new allegations of leaking state secrets.

it has brushed aside a u.s. stocks on limiting greenhouse gases and environment minister say the richer country should bear responsibility for global warming. india is the third largest carbon emitter in the world. have the next, does he hardest job in the world? the man asked to turn around malaysian airlines. counting down to those gdp numbers in japan coming up in just a couple of minutes. talking about the week ahead. stay with us.

, it is 7:30 in hong kong. we are half an hour away from the open of trading in japan and south korea. at are taking a live look the victoria harbour. we are on your tv, mobile, and online. you are watching "first up." there is rallying underway for qantas. turnaround strategy at malaysian airlines. a new ceo has been named.

the chinese markets keep going. a surge has been happening in shanghai. welcome to first up. let's check in on markets this morning, to australia where the asx is trading up 7/10 of a percent. the australian dollar weakening, 2/10 of a percent. we are looking at new zealand right now. not so much movement there, down 1/10 of a percent. percent for 76. we count down the open of japan and korea. at 2/10 of alosed percent. futures pointing to a higher open today. we are waiting for those third-quarter gdp estimate results there.

121, 70% after the dollar jump in most in a year. a new ceo will taken over at malaysian airlines, following a year of high-profile crashes. they must look to ireland to find a new leader there. >> a leader named christophe uhler. he is a 52-year-old german and has led the turnaround of ireland's flag carrier. has been a challenging year for malaysian airlines, a year that certainly has caught to crashes at the state carrier. the vanishing of an age 370 -- the shooting down of a plane months later, it

led to investors and travelers fleeing. they refuse to fly on a carrier because they do not trust it safety. now that job falls to mr. investoro restore confidence and get people back on the planes and traveling to all the destinations to which malaysian airlines travels. seen quite it bit of a turnaround. >> restoring confidence across the board, the key task he has to get in front of him. and then job cuts. a 6 billion restructuring program of the sovereign wealth fund. it is a big task. some in the airline industry are calling it the biggest job of around the world and must

challenging airline job at this time. they are set to take over sometime between march and may. >> thank you very much and welcome back. let's take a look at key events. he joins us from singapore. let's talk about how we are starting off the week here. a yearlar jumped most in as we sock quite a shocking report in the jobs front. . what does this mean for the weaker yen? >> it probably brings forward the right hike in the u.s.. i think the markets will start

to factor that in. that means dollar strength and weakness. >> we keep talking about the yen weakness, hitting 120 last week. what are you seeing here? we are expecting the yen to fall to 140 by the end of next year. next forces are worried they are losing competitiveness against japanese competitors. japanese exporters aren't lowering their prices. they are getting a lot more yen but they are not competitive against the asian export.

the rest of asia should start to worry. there really isn't an issue. >> a lot of economic data coming out this week. just a couple of days there. is the yen going to be a loser out of the selection? >> we will not get any surprises out of the election. he sees that as a mandate for policies. beenpposition hasn't particularly strong. beingd say people are negative because japan does have enormous problems. the workforce is shrinking.

until the consumption tax kicked in, japan was one of the best of the economies. it has not done well since that consumption tax was brought in. the economy still in recession. gradually the japanese economy should get back on its feet. what are you expecting? do you think japan may still be in a recession, but not as bad as we thought? does this change your outlook on japan at all? >> we saw a fallen gdp last quarter. family because of stronger

investment. -- mainly because of stronger investment. the japanese economy is still very weak. surprised to see gdp growth being fairly positive. >> i know we are waiting percent trolled -- waiting for central banks to make a decision. he have seen the bank of korea raise -- cut interest rates twice. some say another could be cutting -- could be coming. >> we are not expecting another cut. korea is one of the countries that will be most affected by that.

the bank of japan will look at that. also people are read about deflation in japan. international prices are falling and that will push prices down. i think outright declines in consumer price inflation looks off. we think the bank of korea will hold firm. for most of the region inflation is very low. their situation is different to everywhere else. probably not an aggressive hiking cycle. almost certainly one today. >> lots of data coming out this week. thank you for giving us a quick preview of that.

let's take a look at some other stories we are following. john is here with the details. >> major banks need as much as $25 billion in next are capital. the country's top lenders now hold about 10%. that compares to at least 12% of the world's biggest and safest banks. have broken out after a woman claimed she was raped by an uber driver. the taxi operates in 11 cities. cost cuts and feel prices are helping margins. analysts arenine still foreseeing more. -- foreseeing searches

for qantas. >> government offices and schools are closed in manila as a typhoon heads for the capital. hits the strongest storm to the philippines this year. hundreds of thousands of people have since fled their home. cecelia, what is the latest in their? >> good morning. marketsin the capital compete to which enter the philippines on december 6. about 900,000 people for grounds. this is probably one of the most massive evacuations in philippine history. about one dozen promises -- one dozen provinces are without electricity, flights have been canceled.

it is expected to delay the of this year.eas it left a thousand more missing. >> one of the cities is still very much hit there. there could be more coming their way. has there been lessons learned from a year ago through the tragedy? >> people have learned their lessons. governments were better prepared this time. people are following orders, some even volunteering to evacuate on their own.

it is a city where thousands were killed. damages have been massive. there are two super typhoons, too much for one lifetime. how thingsk about are going from your side of things, how is it going to work this morning for you? rain in is still no manila as of now. the billboards have been rolled down. put in toave been prevent storm surges. too dense are at home, still

sleeping. i think it should be fine in manila because they have repaired for the storm early on. >> thank you so much for joining us, talking to us about typhoon hagupit. stay with first up tang," the "first up,"ge -- the stock exchange is coming up next. ♪

>> welcome to the stock exchange. we are taking a look ahead to the open of japan and south korea. you are pretty gung ho. >> how else to start a monday morning with the word "gung ho."

shares are rocketing. can't wait to get out of bed. shares are rising. it is going to release the title of the video next week. they will deliver it mid next year. it will be called "puzzles and dragons." >> we talked about that 12 months back. like dungeons and dragons? >> gung ho. ladders. snakes and >> your dating yourself. gree.ve is not the japanese version of the popular u.s. tv show glee.

the first net income could be about ¥10 billion. the forecasts, nothing north of 7 billion. online you are looking at the tech company. see how it goes. , i will take the w. gung ho. that is the verdict on the stock exchange. back in and our to see how the two stocks have done. , latest growth expected out of japan. we will break those numbers live from tokyo. we will also take a closer look at what this means. stay with us.

>> we have revised gdp data out of japan, coming in at -1.9%. that means the economy shrank in the three months leading to september. an initial reading has shown that the annualized gdp contraction has been at 1.6%, coming in bigger than that. bigger thanion is it economists had expected. economists expected revised gdp to come in at 0.5%. we now find it contracted 1.9%. that is going to give a big blow to prime minister all day -- prime minister shinzo abe , whos in the middle of this campaign. we have the current account

balance coming in at ¥833 billion that is bigger then economists forecast. much smaller then the previous current account balance in september. much larger than it economists had forecast. course that is having an impact on the japanese yen, 61.ently trading at 121 >> let's get reaction from gdp figures out of japan. joining us is ed rogers, chief executive officer of rogers investment advisor. thank you for joining us. third quarter falling annualized 1.9%. a shocker?

>> we are surprised. like everyone else we were expecting an improvement. many of the other numbers indicated things were far better -1.6%, the first statement of the number. we are surprised. >> as you mentioned, people were expecting much less of a contraction. how does this change your outlook on japan now? >> it really doesn't. we have a long-term investment thesis. any month to month number doesn't change the way we approach investing in japan. probably far too short-term it is an outlook when they make investments. it is a surprisingly negative number, getting out of the way of the market. it is an important number.

it will be packed along the political process. does it affect our long-term investment? absolutely not. >> it is the central bank policies that reflect some economic change. >> you need to see some more positive numbers. will winshinzo abe reelection. we think seen -- we think he needs to spend political capital on the change items. we need to see immigration , we need toreform see it get pushed through. these things lead to dramatic positive impacts on the medium

and long term. the need to step up to plate and implement the policies they said they would. day steppedt all up? he hasn't been pushing for that third arrow. >> that has been a bit of a surprise to us. basically the tax problems of him and heritage a mandate to raise the consumption tax has been more of a distraction than we thought. got to caughthe up in redefining the constitution issue and spent too much time and energy on that rather than focusing on the economy, which is where he really needed to focus. this snap election, the whole point of it is to refocus the economic issues they need to get

right for japan to succeed going forward. >> we are talking about the recent unit -- the recent news from the u.s. there with some remarkable jobless payroll data. the dollar certainly going to be strengthening. how does that change your outlook on the yen? >> this number will immediately impactful on foreign exchange, far more than actual equity market movements. mind,le points to keep in good u.s. numbers are good for japan. the export sector will dramatically increase and improve in japan. we are already up at 121 in change. it's hard to imagine how it

won't. we don't believe any of these numbers on the bank of japan. that is as important as anything else in this equation. >> thank you so >> deeper than previously

thought, japan's recession worsens in the last quarter. the carrier sees its best profit in years. sony, northing of korea has a response. coming to you live from our asian headquarters.

another surprise out of japan and not the positive kind with the reading on the recession last quarter. live from tokyo. break it down for us. >> japan seems to have gotten in theinto recession third quarter. the three months leading up to september, the gdp shrank an -- annualizednt 1.9%. this is expected to give prime minister shinzo abe a a below in this election season. we have the snap elections coming up in december 14. that will be on sunday. 24 economists actually expected the contraction to be less than about half a percent. now we are seeing an annualized contraction of 1.4%.

we have the current account balance. it comes in as ¥833.4 billion compared to economist forecasts that -- the gdp figures, a blow to prime minister abbaye -- prime minister shinzo abe. he has framed the upcoming vote as a referendum. >> you talk about big blow to president chin so -- to pry minister shinzo abe. what are some key issues he still needs to tackle? >> prime minister abe has a way to go.

his inflationary policies not paying off as expected. if failed tax hike, only coming in and rising 0.9% in october, well below the inflation target of 2%. they may be forced to expand thatary stimulus, given prices are not rising as much as they had expected already. an president easing has plunged. trading at seven year lows. it is already breaching the ¥120 level. not when it comes to small manufacturing, when it comes to households. typical databanks safe corporate bankruptcies related to the weaker let -- to the week yen already at 42. pi mr. abbe has delayed the tax hike by 18 months.

a recent survey saying while that tax hike is expected to about zero .3my, percentage points when it comes to gdp growth. he still has to figure out how to cut the fiscal deficit. >> joining us live from tokyo. all week.e there thank you so much. let us take a look at how the nikkei is trading this week. a seven-year high. up 3/10 of a percent right now. the dollar yen weakening. the yen weakening past 120 last week. let's take a look at how things are going in south korea. not so much movement there.

let's take a look at australia. 10 -- update tenths of a percent. back to australia we go. thanks talk are shrugging off of the recommendation of an inquiry that they raised billions of dollars in extra capital to guard against any future crises. the big four banks have a good reputation. why have they been singled out? >> i just lost the last part of your question there. banks aren't being picked on here. the inquiry david murray used to run the commonwealth of australia, which is the largest the bankse country, are strong. need to raise more

capital to protect themselves in the event of a future global crisis. the report was commissioned by the treasurer, who doesn't want to see taxpayers and up in the situation where they have to bail out the banks. >> it is vitally important that our banks be well capitalized. what to the murray inquiry is recommending is there will be a further look at increasing those capitals. be dealt with appropriately, the regulator. >> we lost hall there. thanks paul for joining us. we will check back in with you a little later. thingsake a look at how

are looking for the airline. currently trading in sydney, what do we have their? up about 12%. cost reductions and lower fuel prices are hoping margins. this increases the chances for a full year profit. nine analysts are still seeing losses for qantas. malaysian airlines expecting to name a new top boss. during his five years at the irish carrier, christoph mueller expanded transatlantic services. prior to that he helped turn over the belgian carrier. government offices and schools are closed today in manila as a typhoon heads for the capital. it is the strongest to hit the philippines this year. tossingin and kale trees and power lines. hundreds of thousands were

evacuated and three people died in the area that was devastated last year. denied any has involvement in a cyber attack on sony pictures. -- did pyongyang have to say? >> they have passed the puck and blame to sympathizers and supporters of the north korean regime. >> they said possibly it was deserving. it may be a righteous deed. -- another news background in this clip. this in thesays governments of voice. thehis attack is clearly righteous act of our some of

pfizer's and supporters, who came forward following our appeal. thus the misfortune they experience can only be seen as a just punishment for evil doings and unjustified actions. through -- it is called "the interview." they have this show in the un is ain which kim jong o massive fan of. they go to interview, when the cia recruits him -- recruits them to assassinate him. >> it's a comedy. happened sonyhis was hacked. we know 40 7000 employees, several hollywood stars and , extraordinary numbers, salaries, all of that to leaked.

trailers on youtube have soared tenfold in the last week. that is pretty good publicity inadvertently. social media and twitter has gone crazy on this. it cost $44 million to make and produce. we had a response from north korea and government. this is where we are. >> a possible link to north korea. this is the first time we heard where this hacking may have occurred. >> it has been traced back to bangkok. at saint regis hotel in bangkok. whether someone was in the room, or someone remotely used it, we do not know the details of this yet.

they leaked confidential information from sony data to the internet. 47,000 sony employees. a lot of hits. seoul. group -- ame we will see what it means. sony traced it back but it is ,icking off the biggest picture cyber security is the biggest danger. >> it goes beyond at this point. thank you so much. we will get back to you on that. known up next, what is and unknown as we head into 2015. our next guests have the answers.

>> time for a look at the key vents we will be tracking this week. the president of indonesia's pro-business images put to the test. erode salaries could indonesia's competitive advantage over china as manufacturers search for lower production costs. resident of vladimir putin heads to india this week as russia struggles under western sanctions over ukraine. looking toward allies and expecting a bunch of energy deals to be signed there. on thursday sony will tell us its plans for the playstation in china, expected to be put on sale following the microsoft launch of the xbox in september. nation has lifted a 14 year band on game consoles and sony has said it aims to enter the markets this month.

on sunday we are talking about the momentous day in japan. prime minister shinzo abe puts his policies on the line, asking for a new update with economics. japan withore on securities head of asian strategy. thank you for joining us this morning. japan.g numbers from most people were expecting this contraction would be a lot less than what they are expecting. seeing 1.9 percent. a big blow for it shinzo abe? , at the end of the day it doesn't matter. in japan is that opposition is completely unpopular. their popularity level is 9%. most any policy probably will be able to win.

the bank of japan will ultimately be up to disconnect itself from its monetary policy. bank of japan is monetizing the government that. japan is can you start gdp growth rates? the bank of japan will be able to disconnect from its policies. end of next year they will be saving on 70% of japanese gdp. overn three to four years 80% of all government bonds will be gone by public enterprises. that is really the key. >> you have to press the reset button and rewind button. is that going to happen? >> the key is structural reform.

i do not believe they can disconnect. it is essentially a doomsday machine. there is nothing you can do about it. i think there is a possibility of disconnect some stage down the track. >> why hasn't oblique dunmore? -- hasn't shinzo abe on more? they no longer content with an economy that has no gdp growth rates or inflation. the question is why hasn't he pushed harder? the answer is politics, clearly. hopefully this mandate, that is probably going to be stronger than the previous one, hopefully it accelerates some reform. everybody, including me, were disappointed with the pace of structural reform. >> is there still an upside to japan? >> it depends.

inequity is the risk. theoretically it will be just higher and higher and higher. an optimal outcome is inflationary outcome. i think if the monetary policy continues with the current costs, it probably will continue in other agencies. the best way to play is edge of the currency risk if you are buying in japan. >> it is well known. japan cannot really get off the rails. whatever they do now they have to continue doing. the other known is the euro zone, one way or the other qe is coming.

real qe is coming sometime next year. we know between japan and the eurozone it will probably inject 1.52 true trillion dollars. -- $1.5 trillion to $2 trillion. the productivity and efficiency is declining. what with china due to continue to be competitive and ensure there is no congressional -- no contractual liquidity. they are trying to get liquidity at a comfortable level. >> we have quite a bit of a week there for the deposit. for is all the time we have you this morning. thank you for joining us on your perspective on the global markets. coming up next, we will tell you why singapore is being described as a great disruptor, coming up after the break.

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>> these are your fx headlines. blowoutcap that the number from the u.s.. the economy adding 320,000 new jobs in november. than median0 more forecasts. little mind there is

evidence that wages aren't going as fast. driven up to its highest level in eight years. over to japan, a different story for the economy. to 2% contraction. that is according to the revised or final numbers. the yen the falling against the dollar early. china releases november trade data and we are looking at forecast from a economists. billion -- the fourth month this year the surplus would be north of $3 billion. the growth index and imports are expected to taper off slightly from the pace we saw back in october. dollar a -- aussie

dollar, 82.99 is what you have here. 12289. we are mostly unchanged from the friday session into early this morning. a quick check of the majors. 155-69. since 2006 for the dollar index. 8938 is the level. in gdp over% jump the last four decades. we are talking about singapore, a major turnaround story since splitting from malaysia. it has beeneasons named one of the world's most successful economic startups. for more we are joined live from the city state.

>> good morning from the lion city. we had the financial district behind me, we talk about credit with ubs city. years agoall here 49 when singapore broke away from malaysia. few people thought it was possible. [no audio] >> we lost linda there. we will check back with her a with singapore. quite the turnaround story. latest oneck out the our bloomberg businessweek this year. we just got word she is back. can you hear us? >> i suddenly can. i was wondering whether you could hear me. i was just looking at how singapore had a master plan to take the city from a poor

colonial outpost to where it is today. the government under the founding father of singapore, he had a vision. singapore a make first world over aces in a third world region. he ensured singapore's economy was open. the port, which is one of the busiest ports in the world, is a free port. it has always been a freeport. to ensure that copies would come to singapore, there were incentives, tax concessions. they ensure there was no corruption in the country as well. of theboast it is one most competitive country economies in the world. and it is the easiest place to do business. by thekings were done world economic forum, as well as the world bank. what singapore also did was invest heavily in education.

.t has no national resources it people are its only resource. it spends about 20% of government spending on education. int two years ago in pumped $4 billion into its own education. are going to see more of that story coming from a special edition of bloomberg businessweek. us.k you for joining coming up manila comes to a standstill as a typhoon heads for the city. we will have the latest on the fallout of the storm in the philippines after this short break. we will be talking to someone over there about the recovery efforts and how the city is -- city as well as the country is going to move forward. stay with us. ♪

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>> good morning. an hour from the open of trade here. you are watching "first up." lessons learned. typhoon hagupit is the response to the test. security chief is kicked out of the party. will he get an open try? changing the game. how atari revolutionized. good morning. i am sending and for angie lau.

let's head to japan. the nikkei 225 is up 0.5%. estimatester gdp showing a bigger contraction than first thought. dropping 9%. the kospi not making much most. as well as the asx up nearly 1%. australiaking about and doubting inquiries saying they need $25 billion in capital. and schoolsffices are close in a manila as a typhoon hats for the capital to be at it is the strongest to hit the philippines this year. it slammed with heavy rain and gales. hundreds of thousands were evacuated and at least three people died in the area devastated by super typhoon haiyan last year. us on theer joins

line now. cecilia, any change? what is the latest? >> good morning. manila is on signal number 2. is the second lowest alert and the weather bureau. against possible flash flood. and along the coast, they are under the storm surge. [indiscernible] they are using sandbags and conducting evacuations. people over the week were stockpiling on grocery items anticipating the slow moving storm. authorities ordered offices and schools closed in the capital. trading of stocks, bonds, and currencies were suspended for the day. provinces are1 without power since yesterday.

right. as mentioned, markets are closed in a manila today. cecilia, you talked about goals shutting down and evacuations. are these signs the government has learned lessons from the last a devastating storm we saw in the philippines? >> yes, definitely. the government has evacuated nearly 900,000 people. the spokesman spoke yesterday and was saying the national guard and governments are better prepared this time. evacuated 2-3 days before the typhoon entered the philippines. also food and other basic items were stockpiled early on. there is better coordination and people are more aware. people are more informed and ready to act.

lessons were certainly learned from typhoon haiyan which killed more than 6000 people in november of last year. chris all right. joining us. thank you for the update. our next guest who returned from the philippines last week. joining us via skype is alice thomas. she is a program manager. thank you for joining us this morning here. cities that we have seen were slim very hard -- slammed very hard last year. is it a huge setback for the cities? seems that the storm spared some of the place that were affected from haiyan. one seemed to be spared the worst. however, areas in the east were heavily damaged last year that were slim again this year.

slammed again this year. there are not communications with some of the areas so it is hard to know how bad the damage is. came from the philippines last week. tell us what you saw. has there been significant progress in terms of storm recovery? was really overwhelmed about how much progress had been made in many places. the progress was overwhelming and one city. i had been there last february. it was a testament to the resilience and tireless work of the filipinos and all of the humanitarian aid that poured in last time. i have to say that there is no doubt there will be enormous damage from this storm and there's likely to be a lot of displacement. easternthe areas in the province where this storm hit again are very poor areas and people do not live in a concrete

homes. they live in informal homes. haiyan displaced more than 4 million people. lives this saved time around and a lot done in advance warning to save lives, there will be a lot of damage and a lot of people homeless. theirhave learned preparation is so vital to the recovery efforts here as well. you mentioned haiyan. the government announced it will relocate as many as 200,000 people live in unsafe areas. will we see a similar response? >> that is a good question. the government did announce they will relocate people in unsafe areas area what i saw when i was there was the progress has been enormously slow. there is just not a lot of available land that is close to the waterfront, which is where people who were displaced earned their livelihood.

tinyof the people, a portion of the people who living to relocate, were at the sea front they were commuting back to their displacement, their transitional site because it was so far way from their former place where they lived. try to gete will to people out of harms way. with climate change, we know a lot governments around the world , everywhere, will have to think about getting people out of harm's way. a very difficult process and remains to be seen. we will see how the government handles it at this time. very will have to watch closely. alice thomas, thank you for joining us from washington, d.c. checking in on corporate stories very -- stories. >> north korea has denied any

involvement in the hack attack against sony. supporters may have carried out the attack and what it called righteous anger. at it astics of the tax source to back to the region's hotel. protest have broken out in new delhi after a woman say she was raped by an uber driver. operates across 11 cities in india. more details are emerging on what may be hong kong's digs property ipo dutch biggest pre-ipo. -- property ipo. it is looking to sell 15% stake. that's a check of the top corporate stories. announced itcially has presented its highest official.

stephen engle joins us with the details. what a fall? >> yeah, it was. this fornown about some time. the party here has announced zhou has been expelled for alleged serious violations of organization and confidentiality discipline. the more salacious details are corruption and moral allegations against the former internal security. abuserties saying zhou his power to help friends make profit and accepted "huge bribes personally and through his family." allegedly had an adulterous relationships and allegedly again traded favors and money for sex. those are the salacious details. statelegations he leaked secrets is the most significant

because it means formal charges would allow for a closed-door trial. the criminal code in china dictates that a suspect cannot be tried publicly if they case involves state secrets. as a former member of the standing committee in the previous administration, he was one of nine powerful man -- men and the spying apparatus 80 could spill a lot of dirt on others. do comeely if they down, it will be a closed-door. another trial was public and he was defiant and much of what he said because the party was reported. that is unlikely to happen this time. >> all right. joining us live from beijing. inll to come, china's growth 2015. what to expect, coming up. ♪

>> a quick check of the markets around the region. to tokyo. up. japan releasing the estimates of third-quarter gdp, a are contraction and then first out. to sydney. up about 1%. up about 60 points right now. two so we go. the kospi. seoul, we go. the future is here. not too much movement there. china surprised the markets with the cut in november. should investors be on the lookout for more of the same? joining us is the chief economist at barclays. thank you for joining us.

should we be expecting more? >> certainly we will. talking up out policy. on the other hand, we look for another hundred basis point cuts. i do think keep the money to keep at paste instead of easing. we are looking for two more rate cuts. >> are you expecting more? there talking about the triple r's. help in terms of liquidity? what are you seeing? it has been rather tied even after the axa magical cut. taking fundsing, away from the banking system and ipo's whichew of will lead to the year end to liquidity. justnk it will unlikely to

inject a huge amount of liquidity into the system and likely to do more cuts to respond to the outflow of liquidity rather than net injection. , the stockioned quite a turnaround there. a rally from 2009, a volatile session. does it have any legs? obviously the monetary easing was the trigger. shift inmentally, a the household as well. the relocation away from wealth towardent or properties equity markets. obviously, the equity markets had been the bear market for seven years. thinking about where to put their money and a reason to

rally since july. also, more in the past two weeks have really shifted the households into equities. >> no doubt. n.c. central's are there. the falling rates and pretty cheap stocks. can these big financials carry on even further? i am not an equity strategist. what i can say is certainly next year we are looking for more financial markets, more capital market reform to happen. side, the the bank deposit insurance to be rolled out which will add to the competition. on the bond market, china's will address the issue of local government debt. on the equity market, we will have a change of the ipo system which will make the markets

become more transparent and better. >> sure. we talked about this ultra rally we saw a morgan stanley calling it that. on the other side, the china etf, a bit of losing face. what did you see? isn't there a concern? more pessimistic on september. all the way into the recent rate cuts. the chinese economy still faces quite a lot of structural challenges. we expected to continue until next year. overcapacity in the manufacturing sector will continue. the government has been accelerating infrastructure investment probably act the pace. year, the monetary

easing we are looking for and larger fiscal deficit and we expect it will continue to look for the economy to slow toward 17% from the 7.3% this year. >> thank you for joining us. jian chang. coming up next, a game changer. how is video machine revolutionized the videogame industry. we have the details after this break. ♪

>> walking to the stock exchange. what our reporters are watching. >> it is up as much as 8%. [indiscernible] is called the dragon.

iwll go online in the middle of next year. after friday's gain. >> sounds like a good again. dragons. yen.0 what do my stock was up as much as 3%. [laughter] what is the story here? we are looking at earnings. it could get a boost. perhaps ¥10 billion. no forecast at this point. if the report is true, we are looking at perhaps 3 billion over the highest estimate from analysts. o> we have to call you gungh all week.

do -- analysts, they humble journey. >> you know how to pick them. that's the verdict from the stock exchange. masterpiece of addictive simplicity. kickstart the gaming industry about for decades ago. when did atari know it was a game changer? we spoke to the creator. >> no one came up with us saying, how come on a tv set when you change the vertical and the picture goes up and it goes down? can we do that horizontally, too? i said we could. that is the motion. no one asked to use that motion circuitry in mind.

>> he is more adventurous by far. [laughter] the day allen west to show up, heard about this thing. i have competition. i was scared. and so i went up to the burlington game and they had it set up. i looked at and it was fuzzy and did not have sound or score. but, i looked around and people were having fun. al what i wanted to do. i thought a good training program would be this ping-pong game. bit of spice into it, i said i had a deal with the general electric. >> he lied to me. [laughter] he kept criticizing us. has to have a score. i made a playbook. i do not know it was a throwaway. we made the speed and angles and worked on it.

>> we found ourselves playing on it for hours after word. seenis game had never been in the wild. there was no instruction. there was nothing like it. i was dying to see how people would adapt with. boom, they start having fun with it right away. sudden, al gets a call in saying the machine is broken. he runs down there and sees what is going on. >> i remember getting a call that is stopped working. hadt was that the coins filled up. it was jammed with too many callings. i opened it up. the quarters came out and i filled my pocket. i said, i think we have a good sign here. if you want to find out more about the most successful economic start up, is an

especial edition of bloomberg businessweek. it includes several other innovators whose ideas have changed our world. here is one guy who changes our world. the great disruptor. [laughter] >> i will tell you one thing which is amazing, japan economic data. we are looking at it. contraction in the economy taking place. tries to move toward the election. he is able to get a fresh mandate there as well. shinzo abe running again for prime minister. looking at the likes of -- he will be joining us after 11:00. and we arena discussing that. rate cuts from you -- the rate cuts, more.

moving to something close to my heart. qantas. >> big profits. >> turning around the company has been a tough job. looking for the biggest profit since 2010. no future aircraft purchases. >> oil prices. >> we have seen all of the air carriers, low-cost, full servers, all. well.ustralia as we could be hearing from the australian regulator. david will be talking at a news conference. given the rationale of them having to lift up the capital equity ratio as well. that is coming up. the hack attack and where it imitates from.

there we go. a lot of stories. >> we will check up later. thank you, rish. that is all from "first up." have a great morning. ♪

>> good morning. i am rishaad salamat. this is "on the move." the late summer slump. the recession deepening and japan. raising profits, qantas soaring. catching a tiger. the fall of one the most powerful figures in china. heads to theapan pollse